Covidien has established Covidien Ventures, a venture capital group focused on investing in companies developing new medical devices, diagnostics and pharmaceuticals.

The corporate venture capital arm of Covidien will be managed by Daniel T. Sheehan, vice president of Corporate Venture Capital, who recently joined Covidien from Affinity Capital Management. Sheehan, who has 20 years of experience in venture capital, business development and investment banking, will direct the new fund and lead the investment process for the Hamilton, Bermuda-based Covidien.

Amy Wendell, senior vice president, corporate strategy and business development, said that the exposure could potentially lead to the acquisition of technology, intellectual property or start-up companies to expand the company’s product portfolio.